Union leaders call for action as industry giants meet at the Private Equity Super Returns conference in Berlin.

GENEVA, LONDON, PARIS and WASHINGTON, DC - As the Private Equity Super Returns conference got underway in Berlin, Philip Jennings, general secretary of UNI Global Union, Andy Stern, president of the Service Employees International Union (SEIU), Jack Dromey, deputy general secretary of UNITE, and John Evans, general secretary of Trade Union Advisory Committee (TUAC) to the OECD, gathered to demand immediate reforms to private equity in order to help avoid further economic crisis. The labour leaders warn that economic disparity and unfettered corporate greed have proven toxic for the economy and must be reformed. Government leaders must take action.

"Millions of workers around the world work in companies that are owned by private equity. As we move into the next phase of the financial crisis those jobs are at risk on top of the millions that stand to be lost because of the crisis. Private equity is being tested as never before. We want to know how they will respond. Will they cut and run or will they work with unions and the workforce to weather the storm?" said Philip Jennings, general secretary of UNI Global Union.

UNI Global Union general secretary Philip Jennings is scheduled to address the Super Returns International conference on 4th February at 16:45 when he will bring labour's message to investors and private equity principals.

"Financial manipulation, greed and deregulation have led to economic havoc," said SEIU President Stern. "For our global economy to thrive and grow again, corporations, governments, and non-state actors -- like labour unions -- must work together towards a system where competition is based on the quality and sustainability of goods and services provided--not by a race to lower costs at the expense of workers, the environment, and product quality."

Many Private equity funds have been driving companies into enormous debt making the future of employment in these companies precarious. Self regulation has allowed financial engineering that generates enormous profits for few and without any regard for the ongoing health of the companies they buy or the workers in their employ.

"The threat that private equity poses to workers, our communities and the global economy is very real. The accumulation over years of huge debt risks in recession disaster. We need much more than promises by the industry to do better," said UNITE General Secretary Jack Dromey. "We need real reforms, with accountability and enforcement. Private Equity in Britain is hiding behind self regulation. But self regulation of the Cayman Islands will never work. Self regulation is no substitute for effective regulation designed to protect the public interest."

During a global news briefing by teleconference, the four leaders demanded:

• Debt disclosure by private equity for every leveraged buyout portfolio company.
  
• Engagement with unions on jobs and solutions to unstable portfolio companies.
  
• Tighter regulations and reforms from governments to prevent future leverage-fueled crises from undermining the global economy.
  
• No bailouts for private equity firms without adequate reforms, oversight and protections.
  
• End tax breaks for high-risk leveraging strategies.
  
• Accountability and enforcement of principles promised by private equity.
  
• Regulation of private equity to be on the agenda of the G20
  

"

###